Global stocks climbed Monday, driven by a Chinese rebound as authorities eased mortgage rules to boost the country’s ailing property sector.
Hong Kong’s
Hang Seng Index
jumped 2.4%, while the
Shanghai Composite
was 1.4% higher. Property developer
Country Garden’s
(ticker: 2007. Hong Kong) shares surged 17% after it struck a deal with creditors to extend payments for an onshore private bond, according to a Reuters report. There were also strong gains for China’s largest tech names—
Alibaba
(9988.Hong Kong) rose 3.3% and
JD.com
(9618.Hong Kong) climbed 5%.
Beijing and Shanghai became the latest Chinese cities to relax mortgage rules, allowing first-home buyers to enjoy preferential loans regardless of their credit records.
The pan-European Stoxx 600 Index rose 0.7% in early trading, while Germany’s
DAX
climbed 0.6%, France’s
CAC
was 0.9% up, and the U.K.’s
FTSE 100
rose 0.6%.
China’s incremental initiatives to aid the property sector, and other moves such as the People’s Bank of China’s support for the yuan, suggest more stimulus ahead, Goldman Sachs analyst Hui Shan said in a note Sunday.
“Collectively they send a clear signal that policymakers want to stabilize the property market, boost growth, and lift sentiment,” Shan said. “We suspect more piecemeal measures will continue to be introduced until policymakers are satisfied with the result,” she added.
Among the biggest risers in the FTSE 100 early Monday were companies with exposure to China, including miners
Glencore
(GLEN.U.K.),
Anglo American
(AAL.U.K.), and
Rio Tinto
(RIO.U.K.), as well as luxury fashion house
Burberry
(BRBY)—all were up between 1.5% and 2%.
Write to Callum Keown at [email protected]
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